Why graduation season is the perfect time for advisors to educate their clients' kids

Graduation season is almost upon us, complete with mortarboards, valedictory addresses and backyard parties. And then maybe a meeting with the family financial advisor about estate planning.

Sorry kids, life isn’t all pomp and circumstance.

Graduation marks a formal shift to adulthood, making it a natural moment when young adults are more receptive to discussions about financial responsibility and long-term planning. Introducing estate planning concepts early allows families to establish healthy communication patterns about wealth before complex situations arise, reducing potential conflict later.

According to Bobby Lovgren, head of wealth planning at RBC Wealth Management US, financial advisors can help families document their wishes and values by explaining the purpose of wills, trusts, and powers of attorney while clarifying the reasoning behind key decisions.

“It’s important to avoid overwhelming graduates with technical jargon or treating this as a one-time conversation. Instead, families should focus on foundational concepts and recognize estate planning as an ongoing dialogue that evolves with life changes. Establishing clear communication protocols creates a framework for discussing future changes as circumstances evolve,” Lovgren said.

Lovgren says advisors can facilitate structured conversations where parents articulate clear support limits and graduates understand what assistance is temporary versus long-term, fostering healthy financial autonomy while maintaining family relationships. He adds that advisors can start simple by helping families articulate non-financial wishes like legacy and philanthropic goals, allowing for a natural progression to weightier discussions.

“This approach mitigates conflict through transparency and documentation, clearly explaining how plans address each family member’s interests and reducing the ambiguity that often breeds resentment. The key is providing clarity and motivation for both parents and graduates as they navigate this transition together,” Lovgren said.

Elsewhere, Andrea Grumley, financial planning manager at EP Wealth Advisors, says graduation is a powerful opportunity to be open and candid with your kids, using objective metrics about the limitations of your wealth.

“Be clear about your desires and define your intent to fund the dreams of your children and their children, as well as potential charities. This may be the first in a series of lifetime educational conversations to help guide your family’s thinking on not only how to practice responsible financial behaviors today but how they will pass on those same family values to the next generation,” Grumley said.

Grumley also recommends discussing with your graduate the expenses for which you expect them to take responsibility, such as rent, food, car insurance and cell phone bills, while identifying items you would like to continue to provide for a period. Common examples may include family vacations or out-of-pocket medical/therapy expenses.

“Your advisor can be a valuable resource to help start these conversations with your family and create a financial plan that aligns with your family’s goals and money-related values. They can also help ensure your estate plan is clearly documented and aligns with your intent,” Grumley said.

Moving on, Quincy Goudeau, wealth advisor and founder of Goud Steward Advisors, says graduation is when “life starts getting real, so start having real conversations.” In his opinion, parents should focus less on “how much” and more on how their family stewards its resources.

“Introduce them to basic estate planning tools such as wills, beneficiaries, transfer-on-death, and power of attorney designations. Share only what is appropriate. While saying nothing isn’t recommended, saying too much too fast can create a sense of entitlement,” Goudeau said, adding that parents should strike a balance between support and not creating dependency.

Goudeau also believes that gifting wealth to kids shouldn’t be random. The goal, he says, is to build respect for wealth, not just access to it.

“Gifting can increase with intention as they hit real-life milestones such as their first job, first place or starting a family. Advisors help parents time those decisions, so the money supports growth, not shortcuts it,” Goudeau said.